888 year profits up
LONDON - Internet gaming group 888 posted a 16 percent increase in year pretax profit on Thursday, and said it was confident of the outlook for 2006.
Profit before tax was $50.2 million (28.7 million pounds) in 2005, compared to $43.1 million in 2004, it said.
“Trading is in line with management’s expectations, and we remain confident in the outlook for the rest of the year,” said Chief Executive John Anderson.
Casino players increased 28 percent to 4.1 million, while poker players more than doubled to 1.5 million.
888 diversified away from the United States, reducing the U.S. share of revenues to 55 percent from 58 percent in 2004. The share increased to 20 from 15 percent.
“To rely on one country too much is not good, and without reducing volumes, I`d like to get the percentage we`re taking from the U.S. down to 20-30 percent as soon as we can,” Anderson told.
He said he was still looking to buy a sports betting operation and had one particular acquisition in mind, although the two companies had not held any talks.
Group gaming revenues were up 52 percent in 2005 to $271 million.
Shares in 888 closed at 179-1/2 pence on Wednesday, valuing the group at slightly more than 600 million pounds.
